The Indian car manufacturers in late 2011 started giving discounts and attractive offers on their car models to lure customers and boost sales in the light of one of the steepest falls in car sales. Offering up to Rs. 70,000 discount and free gifts, carmakers implemented such discounts to get rid of the excess inventory. From January 2012 however, new year models are being launched with price hikes of 1-3 percent. The hikes by automakers are aimed at addressing higher input costs and rupee depreciation.
By November-December 2011, many of the car manufacturers with the exception of Maruti Suzuki and Tata Motors announced that they’ll be increasing the prices of their car range from January 2012 owing to the higher importing costs of raw material as a result of depreciating Indian rupee. According to estimates by Mr. DS Rawat, Secretary General Associated Chambers of Commerce and Industry, by mid 2012, the Indian car manufacturers may increase the hike up to 10 percent.
